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Quality of Aid: It's the Donors, Stupid!

Little improvement of aid effectiveness

International aid is necessary for the achievement of the Millennium Development Goals (MDGs) because it supplements the domestic resources of poor countries allowing them to increase the quantity and quality of their public services – such as education and healthcare – and to fund the policies and investments necessary for development. Just increasing aid, however, is of limited relevance, if it is not used effectively. A lot of ODA is not spent well because of donor practices — not because of recipient’s corruption or incompetence. Improving donor practices, especially through aid harmonization can go a long way in helping achieve the MDG’s. By Eveline Herfkens

 

A large share of aid goes to middle income countries, which do not need external concessional resources to achieve the Millennium Goals: Germany spends almost half of its aid on middle income countries. A substantial amount of the remaining ODA is spent within donor countries ...

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